Shiseido skin care and color products.
M. Von Holden | FilmMagic | Getty Images
The Japanese beauty company Shiseido has said it plans to sell its personal care business, which includes hair care and skin care products at cheaper prices, for 160 billion yen to private equity firm CVC Capital Partners.
Shiseido’s personal care unit contains popular brands such as Senka face wash and Tsubaki shampoo.
Under this agreement, the assets will be transferred to a new company in July. The private equity fund CVC Asia V will acquire a 65% stake in the business and Shiseido will own a 35% stake.
“We see significant potential for growth by further investing in employees, brands and R & D, as well as by driving digitalisation and accelerating overseas expansion, with the potential to be revealed in the future,” said Yukinori Sugiyama, partner and co-head of CVC Japan, in a statement.
Shiseido was founded in Tokyo in 1872 and focuses on its first-class beauty brands such as NARS Cosmetics, Bare Escentuals and its namesake Shiseido line. As part of this strategy, the company plans to end non-core businesses by the end of this year.